Ripple (XRP) is showing signs of deeper weakness after failing to break out of a key technical formation. The asset has faced a strong rejection at the upper boundary of its descending wedge, leading to a notable decline. More importantly, XRP has slipped below both the 100-day and 200-day moving averages—an important technical breakdown that signals growing downside risk.
Daily Chart Outlook: Bearish Momentum Intensifies
On the daily chart, XRP attempted to break through its prolonged consolidation pattern near the $2.5 mark, aligning with the upper edge of a descending wedge. However, the attempt was met with heavy selling pressure, triggering a sharp reversal.
The breakdown below the 100-day and 200-day moving averages, which were providing dynamic support around the $2.2 level, further solidifies the bearish trend. This move is compounded by the appearance of a death cross—where the 100-day MA crosses below the 200-day MA—often regarded as a strong bearish signal for the medium to long term.
With bearish momentum now dominant, attention turns to key support areas at $2.0 and $1.5, the latter aligning with the lower boundary of the wedge. These levels are likely to determine whether XRP can stabilize or face further declines.
4-Hour Chart: Breakdown Confirms Bearish Bias
Zooming in on the 4-hour timeframe, XRP recently broke down from a short-term ascending wedge pattern, typically a bearish setup. The breach of the wedge’s lower trendline near $2.3 confirmed the bearish outlook.
Ripple is now testing a crucial support zone around $2.1. A confirmed drop below this level could trigger accelerated selling, with the next major support seen near $1.5. If bulls manage to defend the $2.1 zone, a brief period of sideways consolidation between $2.0 and $2.3 may follow. However, without a clear bullish reversal, the overall outlook remains tilted to the downside.
